Kudlow’s Money Politics

Reach Out to the Blue Dogs

Look at blue dog conservative Dem victories, and look at Northeast liberal GOP defeats. The changeover in the House may well be a conservative victory, not a liberal one.

Blue dogs are rabid budget balancers.

At today’s news conference, President Bush should reach out to them, and to the Republican base, with a spending limitation pay-as-you go proposal that gets to a balanced budget in a couple of years. Any spending increases (defense) must be offset with spending cuts (domestic pork).

A spending limit paygo was used effectively by the Gingrich Congresses between 1995 and 1998, the high tide of their limited government period. And, this approach will head off a revenue paygo advocated by Pelosi, Spratt and Rangel that would lead to tax hikes.

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